TFSA: Invest $14,000 in this TSX stock and create $784 in annual passive income

By investing $14,000 in high-quality dividend stocks in your tax-free savings account (TFSA) you can create significant annual passive income. Because any dividends earned in a TFSA are not taxed, every dollar of income stays in your pocket or can be reinvested.

Notably, several TSX stocks have been paying and increasing their dividends for decades, making them reliable investments to generate regular income in all market conditions. These are fundamentally strong companies with resilient payouts.

Against this backdrop, here’s a reliable income stock to consider now.

A top TSX dividend stock for hassle-free passive income

For investors looking for reliable passive income, Enbridge (TSX:ENB) is an attractive choice because of its reliable dividend. The energy transportation company has been paying dividends for more than 70 years through multiple commodity cycles and economic downturns. Additionally, Enbridge has increased its annual dividend every year since 1995, demonstrating the sustainability of its business model.

The energy infrastructure company generates revenue from highly diversified sources, which helps smooth out volatility and support distributable cash flow (DCF). Unlike many energy companies that are exposed to swings in oil and gas prices, Enbridge’s profits are largely insulated from commodity risk. Nearly all of its earnings before interest, taxes, depreciation, and amortization (EBITDA) come from regulated assets or long-term take-or-pay contracts, which provide stability and boost cash flow.

Inflation protection is another important benefit. About 80% of Enbridge’s EBITDA is indexed to inflation. Additionally, Enbridge’s extensive network of pipelines and energy infrastructure connects major supply and demand nodes throughout North America, resulting in high asset utilization and positioning Enbridge to capitalize on continued energy demand regardless of near-term market conditions.

Thanks to its resilient business and solid earnings base, Enbridge announced a 3% increase in its quarterly dividend in December last year. The payout will increase to $0.97 per share, or $3.88 per year, starting March 1, 2026. At current prices, that translates to an attractive dividend yield of around 5.6%, making Enbridge an attractive option for investors looking for hassle-free long-term income.

Enbridge shares: Earn about $784 in annual passive income

Enbridge’s diversified revenue base and steady momentum in its core cash and regulated utilities businesses will help generate stable earnings and DCF per share, supporting payouts. Furthermore, the company targets a payout ratio of 60% to 70% of DCF, which is sustainable in the long term and allows Enbridge to take advantage of growth opportunities.

Enbridge is also well positioned to benefit from rising energy demand. The investments in renewable energy and low-carbon infrastructure give the company exposure to structural growth trends, including rising electricity consumption from AI-powered data centers. At the same time, Enbridge is benefiting from the global energy transition through capabilities such as the conversion of coal to gas.

Enbridge expects earnings and DCF per share to grow at a mid-single-digit pace over the medium term. This guidance suggests that the dividend will continue to grow at a similar pace.

In summary, Enbridge’s resilient cash flows, strong visibility into future earnings and DCF, and commitment to rewarding shareholders make it an attractive passive income stock to hold in a TFSA.

TFSA investors can purchase approximately 202 shares of Enbridge with an investment of $14,000 (based on the closing price of $69.25 on February 10). These shares would generate about $195.94 in tax-free passive income every quarter, or about $783.76 per year.

Company	Recent price	Number of shares	Dividend	Total payout	Frequency
Enbridge	$69.25	202	$0.97	$195.94	Quarterly